Determine at what share price you will receive a margin call. You short 200 shares of a stock currently trading for $30 per share. Your initial margin requirement is 40% and the maintenance margin is 25%.
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- Assume you purchased 200 shares of GE common stock on margin at $70 per share from your broker. If the initial margin is 55%, how much did you borrow from the broker? Assume you sold short 100 shares of common stock at $40 per share. The initial margin is 50%. What would be the maintenance margin if a margin call is made at a stock price of $50?You are about to purchase OSTK, which is currently trading at $20 per share. You have $5,000 of your own to invest. You borrow an additional $5,000 from your broker and invest $10,000 in the stock. How far does the stock price have to fall for you to get a margin call if the maintenance margin requirement is 35%?You have borrowed $45,000 on margin to buy shares in Tencent, which is now selling at $120 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 30%. Two days later, the stock price falls to $105 per share. a. What is the current margin and will you recieve a margin call? b. How low can the price of the shares fall before you recieve a margin call?
- Suppose that you just short sold 100 shares of Quiet Minds stock for $86.00 per share. Required: a. If the initial margin requirement is 60%, how much equity must you invest?Assume you sold short 100 shares of common stock at $40 per share. The initial margin is 50%. What would be the maintenance margin if a margin call is made at a stock price of $50?Suppose that you just purchased 250 shares of Beta Banana’s stock for $70 per share. The initial margin requirement is 70.0%, which means the amount borrowed is $5,250. The corresponding balance sheet is below: Assets Liabilities and Equity Stock $ 17,500.00 Loan from broker $ 5,250.00 Equity $ 12,250.00 Total assets $ 17,500.00 Total liabilities and equity $ 17,500.00 Required: a. Now suppose the price of the stock falls to $41 per share. What is your current margin percentage? (Round your answer to 2 decimal places.) b. Construct the balance sheet to show the current situation. c. If the maintenance margin is 50%, at what stock price would you get a margin call? (Round your answer to 2 decimal places.)
- You have borrowed $45,000 on margin to buy shares in Tencent, which is now selling at $120 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 30%. Two days later, the stock price falls to $105 per share. a. What is the current margin and will you recieve a margin call? b. How low can the price of Baidu shares fall before you recieve a margin call?You’ve borrowed $20,000 on margin to buy shares in Ixnay, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $35 per share.a. Will you receive a margin call?b. How low can the price of Ixnay shares fall before you receive a margin call?If an investor buys 1,000 shares at $50 and the initial margin is 60% and the maintenance margin is 30%, the investor will receive the first margin call when the stock price falls below: $41.29 $38.52 $31.57 $28.57 $26.77
- You sold short 200 shares of META at $130 per share. You put up additional $13,000 to meet the 50% initial margin requirement. What is your margin if the stock price changes to $140? Enter your answer as a decimal, rounded to three decimal places.An investor buys $ 8,000 worth of a stock priced at $ 50 per share using 60 % initial margin . The broker charges 7 % on the margin loan and requires a 35 % maintenance margin . In one year the investor gets a margin call . At the time of the margin call the stock's price must have beenYou purchase 110 shares for $40 a share ($4,400), and after a year the price falls to $35. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense): 15 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. % 50 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. % 75 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place. %
